1999 1 January Single EU currency is introduced EU enters the third stage of the Economic and Monetary Union, and 11 EU Member States (Finland, Germany, Luxembourg, the Netherlands, Belgium, Ireland, Austria, France, Spain, Portugal, and Italy) officially abolish their currencies and enter into collaboration on a single currency, the Euro. 1 January Central rates and fluctuation margins for the Danish krone in ERM II As of 1 January 1999, the Danish krone accedes to the new EU currency mechanism, ERM II. Following the adoption of set rates of exchange with regard to the Euro and the national currencies hitherto in force for those countries which introduce the Euro on 1 January 1999, Denmark, Greece, the Euro countries and the European Central Bank, the ECB, have stipulated central rates for the Danish krone and the Greek drachma in relation to the Euro. The central rate for the Danish krone in relation to the Euro has been calculated on the basis of the central rate hitherto in force in relation to the German Deutschmark within the EMS (DKK 381.443 per DEM 100) and the exchange rate between Deutschmark and Euro: Central rate: DKK 746.038 per EUR 100 The fluctuation margin for the Danish krone has been set at 2.25 per cent each way, and the intervention rates are: Buying rate: DKK 762.824 per 100 EUR Asking rate: DKK 729.252 per 100 EUR The irrevocably set exchange rates between the Euro and the national currencies of those EU Member States who accede to the Euro on 1 January 1999 are as follows: EUR 1 = 40.3399 Belgian franc = 1.95583 German Deutschmark = 166.386 Spanish peseta = 6.55957 French franc = 0.787564 Irish punt = 1 936.27 Italian lire = 40.3399 Luxembourg franc = 2.20371 Dutch guilder = 13.7603 Austrian schilling = 200.482 Portuguese escudos = 5.94573 Finnish markka 25 February Local-authority collective agreement Local government employees, as represented by KTO (The Association of Local Government Employees' Organisations), agree on a settlement with local-authority employers. This agreement provides three additional days of holidays for local-authority employees; one of these extra days will be awarded during each of the three years of the agreement period. Employees may choose to take a cash payment in lieu of these holidays. The agreement entails total pay rises of 7.55 per cent during the next three years. However, the general pay rises comprised within this overall framework will only be 5.46 per cent. The remaining funds will be distributed as follows: 0.97 per cent are allocated to special pay pools, 1 per cent will be used to finance the extra holiday, and 0.19 per cent will be used for pensions. These pay rises do not include the effect of the adjustment scheme, which prevents the difference between pay within the public and private sectors from becoming too large. This adjustment scheme will entail a 0.70 per cent pay rise in the first year of this agreement period. Employers will have more flexibility to dictate employees¿ working hours. It becomes possible carry out local/regional departures from central regulations on working hours, and reimbursements for overtime can take the form of cash payments rather than time off. Employees aged 21 or more who have already been in permanent employment for at least one year will have access to labour-market pension schemes. Previously, this requirement involved a minimum age of 25 years and four years of employment. Employers' right to fire employees with more than 120 days of absence due to sickness within a one-year period is repealed. 26 February Collective agreement for state employees The state employees, as represented by the Joint Committee of the Central Organisations, agree on a settlement with the Danish Minister of Finance. This agreement is largely similar to the agreement entered into by local-government employees. This agreement entails a 7.5 per cent pay rise and a continuation of the pay-adjustment scheme. State employees will receive an additional three days of holidays during the next three years. The first additional day becomes available on 1 April 1999 for all employees with more than six months of employment within the state sector. The additional days can also be paid out. State employees, like the local-government employees, must prepare to be more flexible as regards working hours, as exact working hours will be determined locally. Emphasis is placed on skill-raising schemes; these include the formation (on 1 April 2000) of a special state Centre for Competencies and Quality Development. 10 March Dairy merger The two largest dairy companies in Denmark, MD Foods and Kløver Mælk, announce their plans to merge. 10 March Merger in the financial sector Unibank announces their acquisition of the Tryg-Baltica insurance company. 24 March NATO action against Yugoslavia NATO initiates aerial attacks on military targets in Yugoslavia with a view to putting an end to Serbian aggression against the Kosovo-Albanian population. 10 June Election for the European Parliament The election for the European Parliament results in the following distribution of votes (per cent) The Social Democratic Party 16.5 The Social Liberal Party 9.1 The Conservative Party, 8.5 The Centre Democrats 3.5 The Socialist Peoples¿ Party 7.1 The JuneMovement 16.1 The People¿s Movement against the EU 7.3 The Danish People¿s Party 5.8 The Christian People¿s Party 2.0 Venstre (Denmark¿s Liberal Party) 23.4 The Progress Party 0.7 Total 100.0 This results in the following distribution of candidates: 5 candidates for Venstre (Denmark¿s Liberal Party) , 3 candidates each for the Social Democratic Party and The JuneMovement, and 1 candidate each for the Social Liberal Party, the Conservative Party, the Socialist Peoples¿ Party, the People's Movement against the EU, and the Danish People¿s Party. 10 June Peace plan for Kosovo The UN Security Council adopts a peace plan for Kosovo. This peace plan means that the peace force is able to start moving in, while the Yugoslavian force begins their withdrawal. 10 July New ministers The present Minister for Research, Jan Trøjborg, takes over the Ministry of Development Aid from Poul Nielson, whereas Birte Weiss is appointed as the new Minister for Research. 31 August Finance Act Proposal (Budget) The Minister of Finance introduces Bill No. 249 of 31 August: the 2000 Finance Act. 5 October The government's policy statement The Danish Parliament is back in session and is opened by the Prime Minister's opening speech, which includes the following policy statements: The use of PVC and phthalates is to be reduced by means of new taxes. Pesticide use in agriculture, forestry, and private gardens must be reduced. New regulations are to be introduced on registration of sales and use of feedstuffs and additives at individual farms. It is also proposed to provide legal opportunities for holding back shipments of feedstuffs where these feedstuffs are suspected to contain undesirable substances or dangerous bacteria. A proposal is advanced for the repeal of the regulations on reimbursement of enterprise costs in connection with the administration of taxes and costs. Less rigorous and more uniform taxation should be levied on employers¿ contributions for training/education and transport in relation to this. Among other things, this proposal is to enable enterprises to help redundant employees with re-training programmes without subjecting such employees to additional taxes due to such schemes. A reform of the adult-education and supplementary-training system is planned. This system is to aim more specifically at those with short-term education and at education/training which provides real labour-market competencies. The objectives of various types of general education should also be clarified. A two-year pilot project is to provide local-authorities with opportunities for taking on mature long-term unemployed individuals in permanent positions on standard terms. The proposal regarding these so-called ¿senior jobs¿ is an extension of the June government agreement with local authorities. Those with flex jobs should have improved rights. A proposal is advanced for an amendment to the legislation on leave, so that families with young children have more flexible access to leave. Local authorities with guarantee schemes as regards child care will have the option of increasing parent contributions by 1 per cent a year; however, the 2002 rate cannot exceed 33 per cent. The projected amendments to the regulations on the home-service scheme will be presented in October. A majority within the Danish Parliament have already agreed that in future, no subsidies will be available for window cleaning, and that subsidies for gardening work should be reduced. A proposal is advanced for allowing the construction of a new type of cooperative housing, where the only element of public participation will be a municipal guarantee on the low-priority loans. This proposal will make it easier for the elderly ¿ especially the affluent group ¿ to form collective cooperative housing communities. This will not affect the present quota of cooperative housing with public support. An EU Directive stipulates that a ban on adverts on tobacco be introduced. This ban will comprise all types of advertising, sponsorships, and free distribution of tobacco. All public institutions, including day-care institutions, schools, and hospitals, are to introduce no-smoking environments. Teachers may still smoke; all smoking must, however, take place in designated areas. This also applies to employees at day-care institutions. Hospital employees will be banned from smoking at all on hospital premises. However, this ban does not enter into force until a transitional period has elapsed. Patients and their families will not be affected by this ban. The Aliens¿ Act is to be amended with a view to compliance with the Schengen agreement. Denmark is expected to accede to this cooperation scheme on 1 October 2000. The first step with regard to a reform of legislation on gambling will be taken this year. This reform will include issues such as taxes on gambling, and the first area to be addressed will be slot machines. The legislation on competition is to include the issue of mergers, thus improving state control in connection with major mergers. An amendment to the Penal Code is to facilitate more frequent use of community service as punishment for drink driving. Camera surveillance of traffic is to be authorised. 5 October Danish/Swedish dairy merger MD Foods and the Swedish Arla announce their plans to merge, thus creating the largest dairy company in Europe, which will be called Arla Foods. 16 November Tax and duty amendments As of 26 October 1999, the Danish Parliament adopts higher taxes on used, imported vans. A graded scale is introduced, with tax brackets being adjusted in accordance with the age of the vans, just as for used passenger cars. The taxable value is increased by DKK 6,100 for used cars which are registered for the first time in Denmark and which do not feature a catalytic converter or a similar device. Moreover, the taxable value is increased by DKK 7,450 for used passenger cars and vans which have no airbags, and by DKK 3,725 for vehicles with just one airbag. This Act applies to vehicles which are reported for taxation as of 26 October 1999; certain modifications do, however, apply. (No. 837/17 November) 30 November Agreement on the Finance Act The government concludes the negotiations on the 2000 Finance Act. This agreement comprises many sub-agreements featuring agreements with several different constellations of parties. The following agreements have been entered into: A five-year traffic agreement, a four-year police agreement, an agreement on service jobs, a reform of the adult-education and supplementary-training system, an agreement on early retirement, a health-care agreement, and a series of smaller agreements. The various agreements and settlements include the following elements: Traffic agreement: (participants: the Social Democratic Party, the Social Liberal Party, the Socialist Peoples¿ Party, the Danish Red-Green Alliance): An annual DKK 1.1 billion is to be allocated to collective transport during the next five years. The Danish National Railway are to use this money for new high-speed trains for the services between Copenhagen, Aarhus, and Aalborg, and to improve S-train connections between Copenhagen Central Station and Østerport Station. A series of projects are also brought forward, especially in the Copenhagen area. Annual funds of DKK 530 million will be allocated to the Danish National Railways Agency for improvements to railway tracks. This is to be financed by means of taxes levied on diesel and natural gas, to an amount of approximately DKK 500 million per year, and by converting the Port of Copenhagen to a state port. Diesel taxes increase by DKK 0.23 per litre, and a new tax on natural gas is introduced. This tax will mainly be levied against natural-gas companies. Police agreement (participants: the Social Democratic Party, the Social Liberal Party, the Socialist Peoples¿ Party, the Centre Democrats, Venstre (Denmark¿s Liberal Party), the Conservative Party): This four-year agreement allocates extra funding to the police to a total amount of nearly DKK 2.4 billion. An additional 540 positions will be filled, of which 230 will be police officers. Agreements have been entered into on improvements in local police work, stronger efforts directed against violent crime and gangs, and more patrol work. Part of the funding is to be spent on border control in connection with the Schengen agreement and on improvements to police IT and emergency exchanges. A number of fines are increased in order to supply police funding. Additional funding is secured by cuts to funeral activities and by abolishing the postage subsidies previously in force for journals. Agreement on service jobs (participants: the Social Democratic Party, the Social Liberal Party, the Centre Democrats, the Socialist Peoples¿ Party, the Danish Red-Green Alliance): A two-year pilot scheme on service jobs is established with a view to enabling local authorities, counties, and state institutions to employ mature (48+) unemployed individuals in real jobs. This pilot scheme provides unemployed individuals over the age of 48 who have taken part in an activation scheme for at least six months with opportunities for securing a real job within e.g. health care or the traffic sector. Such jobs can entail assistance to qualified health-care providers, surveillance of train stations, etc. The Danish state provides an annual subsidy of DKK 100,000 to the relevant county or local authority for the duration of employment. The target group comprises 36,000 unemployed individuals and 25,000 transitional-benefit claimants. Reform of the adult education/supplementary training system (participants: the Social Democratic Party, the Social Liberal Party, the Socialist Peoples¿ Party, the Centre Democrats): State contributions to adult education and supplementary training are frozen at DKK 3.5 billion. After a few years, the labour market must finance courses which are specifically aimed at enterprises by means of contributions to the newly established Arbejdsmarkedets Uddannelsesfinansiering ('Labour Market Education Fund'), also known as AUF. The scope of these contributions is determined by the board of management of the AUF, which comprises the labour-market parties. Calculations issued by the Ministry of Labour show that a total boost of DKK 200 million will entail contributions of DKK 100 per full-time employee. Public efforts are to aim specifically at providing boosts for those with short-term education. The plethora of courses offered is subjected to rigorous scrutiny, whereas education-benefit rates remain at 100 per cent of the maximum unemployment-benefit rate. Agreement on early retirement (participants: the Social Democratic Party, the Social Liberal Party, Venstre (Denmark¿s Liberal Party), the Conservative Party, the Centre Democrats, the Christian People¿s Party, the Socialist Peoples¿ Party): A framework agreement on a reform of the early-retirement system is entered into. This reform is expected to enter into force in 2003. This reform changes the current four types of benefit to just two. Those who cannot work at all will receive benefit, while those who retain some capacity for work will receive a lower benefit. Such benefit claimants will, however, also become entitled to suitable employment, thus providing them with opportunities for augmenting this benefit if they so desire. Labour-market reform (participants: the Social Democratic Party, the Social Liberal Party, Venstre (Denmark¿s Liberal Party), the Conservative Party, the Christian People¿s Party, the Centre Democrats): This agreement is an adjustment of the latest labour-market reform. The most significant amendment entails less rigorous requirements as regards activation of unemployed individuals aged 58-59 who are entitled to early retirement at the age of 60. In future, this group of unemployed people will not automatically be forced to take part in activation schemes. Each case will be assessed individually. The unemployed¿s opportunities for gaining a foothold within the labour market must be improved by using trainee periods at enterprises as a tool in activation efforts. Health-care agreement: the Social Democratic Party, the Social Liberal Party, the Socialist Peoples¿ Party, the Centre Democrats, the Conservative Party, Venstre (Denmark¿s Liberal Party): DKK 495 million are set aside for increased efforts to combat cancer during the period 2000-2002. The funds are to be used to buy equipment (scanners) and to train specialist health-care staff. These funds do not include the DKK 850 million for cancer treatment which form part of the agreement on county finances for 2000. Opportunities for choosing hospice care are improved, and the psychiatric sector will receive an additional DKK 750 million during the period 2000-2002. The funding for this health-care agreement is to be raised by means of cuts to state subsidies for medication. Tenders are to be invited with respect to a number of pharmaceuticals. Also, public subsidies for new pharmaceuticals may in future be calculated on the basis of European average prices. Various agreements (participants: the Social Democratic Party, the Social Liberal Party, the Socialist Peoples¿ Party, the Centre Democrats): The home-service scheme is extended in scope, so that it is also possible to receive subsidies for services such as grocery shopping and collection of children from day-care institutions. In future, payment of social pensions will terminate on the date of the recipient¿s death. Such pensions are currently paid out to the estate for the rest of the month in question. The double personal allowance for bereaved spouses is also abolished. Fees for new passports are increased to DKK 600. The price of passports for children remains unaltered. Taxes in connection with legal action are increased from one to two per cent of amounts in excess of DKK 6,000. 4 December WTO Summit in Seattle The WTO negotiations end in a breakdown which is largely ascribed to the large contrasts between the USA, EU, and the developing countries. The developing countries are dissatisfied by the way in which the USA and EU force through their proposals, and by the fact that developing countries have no place in the small inner circle of countries which set the agenda for WTO negotiations on free trade. 9 December Tryg-Baltica buys a Norwegian insurance company The Unidanmark Group expands in accordance with its Nordic strategies by acquiring the Norwegian insurance company Vesta, thus creating of the largest insurance groups in the Nordic countries. 11 December EU Summit in Helsinki The Heads of State and Government of the EU decide to expand the number of countries who wish to become members of the EU. Six new countries are invited to enter into negotiations on membership: Bulgaria, Latvia, Lithuania, Malta, Slovakia, and Rumania. At the same time, Turkey¿s application for membership is approved by the EU. The Heads of State and Government decide that the EU must be ready to accept new members as of 1 January 2003. 20 December Danisco Distillers sold The state-owned Swedish company Vin & Sprit announce their acquisition of 51 per cent of the company Danisco Distillers, thus taking over classic Danish brand names such as "Aalborg Akvavit" and "Gammel Dansk". The sale of Danisco Distillers heralds a return for "De Danske Spritfabrikker", as Vin & Sprit restores the company's original name as part of the transaction.